Patterson-uti Energy, Inc. · NASDAQ:PTEN
Patterson-uti Energy — Raymond James 39th Annual Institutional Investors Conference 2018
28 slides from Patterson-uti Energy's conference presentation, Mar 6, 2018
Slide 1: Raymond James 39th Annual Institutional Investors Conference
Raymond James March 6, 2018 39th Annual Institutional Investors Conference
Slide 2: Forward-Looking Statements
Forward-Looking Statements This material and any oral statements made in connection with this material include "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. Statements made which provide the Company’s or management’s intentions
Slide 3: Who We Are: An Oilfield Services Leader
Who We Are: An Oilfield Services Leader Patterson-UTI reported revenue for the three months ended December 31, 2017. DRILLING PRESSURE PUMPING High quality fleet of land drilling rigs, including 198 APEX® class rigs Leader in walking rig technology for pad drilling applications Large footprint with
Slide 4: Comprehensive Oilfield Services and Solutions
Comprehensive Oilfield Services and Solutions Contract Drilling Hydraulic Fracturing Directional Drilling Cementing Acidizing Nitrogen Service Air Drilling Drilling Motor Rentals Water Transfer Drilling Top Drives Well Surveying Rental Equipment
Slide 5: Broad Footprint in Oilfield Services
patenergy.com WEST TEXAS / 51 APPALACHIA / 30 MID-CONTINENT / 30 EAST TEXAS / 21 SOUTH TEXAS / 17 ROCKIES / 13 NORTH DAKOTA / 8 CANADA / 3 By Region As of March 2, 2018 Active Rig Count 173 TEXAS / 667k HP APPALACHIA / 320k HP MID-CONTINENT / 263k HP Active Horsepower PATTERSON-UTI OPERATING AREAS U
Slide 6: Q4 2017 Earnings Call Recap
Q4 2017 Earnings Call Recap PTEN pressure pumping results in the first quarter are being impacted by transitory issues including weather Initiatives to improve pressure pumping results in 2018 include: Generating more cash with current active horsepower Relocating active spreads to more profitable m
Slide 7: Why Invest in Patterson-UTI Energy?
Efficiency Efficiency improves well economics Patterson-UTI has the scale, processes, people and equipment necessary for efficient operations Technology Technology helps to improve efficiency Patterson-UTI is a technology leader in oilfield services U.S. Oilfield Services Scale Scale helps to improv
Slide 8: A History of Returning Capital to Shareholders
A History of Returning Capital to Shareholders We expect to generate strong free cash flow in 2018 Patterson-UTI has a history of returning capital to shareholders Source: Patterson-UTI Company Filings.
Slide 9: Patterson-UTI: A Leader in Oilfield Services
Patterson-UTI: A Leader in Oilfield Services Efficiency Efficiency improves well economics. People Crews receive extensive onboarding and ongoing training to ensure competency and refine operating and safety procedures. Processes Patterson-UTI utilizes industry leading management systems and field a
Slide 10: People: Personnel Development
People: Personnel Development Working incident free is not just a priority to us — it's our way of life. Operational excellence is our minimum standard — excellence is our way of life. Development of our people is a core value — continuous learning is our way of life.
Slide 11: Process: Management System
Process: Management System Management System allows for continuous updates on Policies & Priorities Comprehensive Rig and Frac Fleet audits ensure uptime, preventative maintenance, continuous improvement. Incident Management System allow data for Reporting and tracking to completion of Incidents and
Slide 12: Innovative Rig Designs: APEX-XK
Innovative Rig Designs: APEX-XK® Able to walk x/y with full set-back of pipe in mast Walking system integrated into substructure Blowout Preventer remains upright in substructure while walking Drawworks on rig floor allows more clearance under rig for walking Advanced environmental spill control int
Slide 13: Innovative Rig Designs: APEX-XC
Innovative Rig Designs: APEX-XC™ Standard with higher-torque top drive Enhanced setback capacity for efficiently drilling longer laterals Increased clearance for walking over and around wellheads on a pad HPU, accumulator and walking system integrated in substructure for efficient rig moves and rig
Slide 14: Innovative Rig Upgrades
Innovative Rig Upgrades: Upgraded seven APEX 1000® rigs to APEX-XK® rigs, with an additional two planned for delivery in the first half of 2018. Upgrading three APEX® rigs to APEX-PK™ with a box-on-box substructure and integrated walking system for enhanced performance on multi-well pads. Upgraded r
Slide 15: Innovative Rig Technology: Warrior Ton AC Top Drive
Innovative Rig Technology: Warrior 500 Ton AC Top Drive HIGH PERFORMANCE - 50,000 ft-lbs continuous torque rating REDUNDANT POWER DELIVERY - Four independent power pathways from the AC bus to the top drive quill - No single-point sources of failure from generator to drill pipe REVOLUTIONARY POWER TR
Slide 16: Innovative Pressure Pumping Technology: Bi-Fuel
Innovative Pressure Pumping Technology: Bi-Fuel Engines can burn a fuel mix comprised of up to 70% natural gas Comparable torque and horsepower to an all diesel engine Reduces operating costs by lowering fuel costs Good for environmental sustainability
Slide 17: Innovative: Performance Data Analytics
Innovative: Performance Data Analytics Real-time innovative data analysis system collects and analyzes data across region, pad and rigs for performance by formation, section, crew, etc. Ability to analyze equipment and maintenance data across rigs and vendors to benchmark performance and maximize re
Slide 18: Innovative: Centralized Logistics Center
Innovative: Centralized Logistics Center Efficient procurement and logistics of sand and chemicals is important to being successful in hydraulic fracturing. Centralized logistics center includes: central scheduling and tracking software 24/7 dispatch personnel smart phone apps in the field Currently
Slide 19: Innovative: Directional Drilling
Innovative: Directional Drilling MS Directional, a leading provider of directional drilling services in the United States MS Directional has a strong technology focus with proprietary mud motor, MWD and survey equipment Patented C2 technology enables high-speed electromagnetic telemetry independent
Slide 20: Innovative: Automation and Remote Operations
Innovative: Automation and Remote Operations REMOTE OPERATIONS Remote operations allow a specialist to manage multiple wells at one time RIG AUTOMATION Consistent, automated processes at the wellsite limit safety risks, reduce well costs, streamline logistics and increase margins DD AUTOMATION Contr
Slide 21: Strong Financial Position
Strong Financial Position Substantial Liquidity $43 million cash as of December 31, 2017 $500 million revolver through March 2019 17.2% Net Debt/Total Capital at December 31, 2017 (excluding $525 million debt issued in January 2018) $300 million term loan matures October 2020 $300 million term loan
Slide 22: Why Invest in Patterson-UTI Energy?
Efficiency Efficiency improves well economics Patterson-UTI has the scale, processes, people and equipment necessary for efficient operations Technology Technology helps to improve efficiency Patterson-UTI is a technology leader in oilfield services U.S. Oilfield Services Scale Scale helps to improv
Slide 23: Patterson-UTI Energy Inc.
40 PATTERSON-UTI ERGY INC.
Slide 24: Additional References
PATTERSON-UTI ENERGY INC. Additional References
Slide 25: APEX Class Rigs
APEX® Class Rigs 1 Three to be upgraded to APEX-PK® 2 Two to be upgraded to APEX-XK™ 198 APEX-XK 1500® APEX 300-Series® APEX 1500®1 APEX PK™ APEX 1000®2 Other AC 64 53 46 28 4 2 APEX-XC® 1
Slide 26: Modern Pressure Pumping Equipment
Modern Pressure Pumping Equipment Fracturing horsepower location as of December 31, 2017 APPALACHIA 23% 1.5 MM HORSEPOWER TEXAS 57% MID-CONTINENT 20%
Slide 27: Non-U.S. GAAP Financial Measures
Non-U.S. GAAP Financial Measures (1) Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) is not defined by U.S. GAAP. We define Adjusted EBITDA as net income (loss) plus net interest expense, income tax expense (benefit) and depreciation, depletion, amortizati
Slide 28: Patterson-UTI Energy Inc.
40 PATTERSON-UTI ERGY INC.
Patterson UTI Energy — Raymond James 39th Annual Institutional Investors Conference 2018 on 6ix